Kawada Technologies cuts sales forecast, holds profit targets and dividend

Kawada Technologies reported a 16.7% decrease in H1 FY3/2026 sales revenues to JPY 55,346 million, with operating profit down 33.9% to JPY 3,172 million. The decline was attributed to slower project progress in steel construction and civil engineering, despite a significant increase in newly-received orders, reaching a record high of JPY 169,597 million on hand.

The company revised its full-year FY3/2026 sales forecast downward by 8.0% to JPY 115,000 million from the initial JPY 125,000 million. However, operating profit and ordinary profit forecasts remain unchanged at JPY 7,800 million and JPY 9,600 million, respectively, due to anticipated contract modifications on projects nearing completion.

Kawada Technologies also updated its 3rd Medium-Term Management Plan, lowering the 3-year cumulative sales target to JPY 377,000 million while maintaining other targets, including ROE of 8.0% or more. The company reiterated its dividend policy, targeting a stable dividend with a consolidated payout ratio of approximately 30%, excluding non-recurring special factors, and anticipates an annual dividend of JPY 130 per share for FY3/2026.